You might be a-MAZE-d to See Where the Price of This Grain Goes:
Corn futures have traded impressively off of the lows found a little over a week ago. We are focusing on the July contract as it has found solid support from last year’s range at a 50% retracement level on that 1/7 low. The market is running into slight resistance with the 100 dma and trend line just above. That is why we are looking for a consolidated pull back to just above the 700 double bottom (9/28 and 11/16). The truth is we are still in a drought; snow has been scarce this winter. Additionally, droughts typically last more than one year. Also, the resilience in the market to shake off reports of slowing ethanol and export demand are viewed as bullish in the long term. A close above the 100 day moving average at 734 is extremely bullish. A close below the 200 day moving average at 688 is bearish and furthermore a close below 672 will signal a reversal. My trendfollowing program has fired a Buy Signal in the July Corn. Whats my trade?
*****BUY ZCN3 $706.0 (ENTRY)
*****SELL ZCN3 $685.0 (STOP LOSS)
Resistance – 725, 731-34**, 748**, 756, 766***
Support – 705**, 698.5, 688***, 672***
Since this is expected to be a longer term trade I will send lives updates....follow me at @rilczyszyn or send an email to firstname.lastname@example.org
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.